Customer Delight - CRM and Logistics Interface

Dabur Consumer Health

Customer

Delight: CRM & Logistics Interface

Presented at MDP organised by Management Development Center & UPES DEhradun


CRM•C USTOMER •R ELATIONship•M ANAGEMENT


RELATIONship BETWEEN

COMPANY AND C&FAC&FA AND STOCKIEST

STOCKIeST AND TRADE TRADE TO THE CONSUMER


Relationship marketing

Moving from a ‘transactional’ model of marketing to a ‘relationship’ model

Advocate

Supporter

Client

Customer

Prospect

Emphasis On

developing and

Enhancing relationships (customer keeping)

Emphasis on new

Customers (customer catching)

Advocate

e Supporter

r Client

t Customer

r Prospect

t

Advocate

e Supporter

r Client

t Customer

r Prospect

t

Emphasis

s on

n

developing

g

and

d

enhancing

g

relationships

s

(customer

r keeping)

)

Emphasis

s

on new

new

customers

s

(customer

r catching)

)


What is relationship marketing ?

• Marketing designed to create, maintain, and enhance strong relationships with customers and other stakeholders


CRM vs Relationship Marketing:

• CRM develops a customer strategy and introduce segmentation to allow those requirements to be fulfilled

• CRM may mean radical changes on many levels in the organisation

• Chances of failure are reduced if some basic pitfalls are avoided

• Relationship marketing does not have to be technology intensive


Why is it important?

• It costs five times as much to attract a new customer as it does to keep a current one satisfied.

• It is claimed that a 5% improvement in customer retention can cause an increase in profitability of between 25 and 85 percent depending on the industry.

• Likewise, it is easier to deliver additional products and services to an existing customer than to a first-time “buyer.”


Customer Lifetime Value

• Losing an existing customer means losing the entire revenue stream that customer represents – not just that single encounter or sale.


WHO IS CUSTOMER ?

• IS HE DELIGHTED ?


WHO IS THE CUSTOMER: DEFINITION

• The next person (individual of function / group) in the work place, the receiver of output and the next to act on it.

A customer may be either external or internal.• External customers are those who buy our products /

services.• Internal customers are individuals / departments who use

our outputs as their input and we become their suppliers.

• In an organization, all of us are both supplier and customers to one another like a chain.


The Customer wants…………..

• Right Quality

• Right Quantity

• Right Time

• Right Cost


“ A Customer is the most

Important visitor on our premises

He is not dependent on us

We are dependent on him.

He is not an interruption to our work

He is the purpose of it

He is not an outsider in our business.

He is a part of it.

We are not doing him a favour

by serving him

He is doing us a favour by giving us an

opportunity to do so.”

Mohandas K. Gandhi


CRM – A DEFINITION

• CRM is an integrated organizational approach in delighting customers (both external and internal) by meeting their expectation on a continuous basis through everyone involved with the organisation working on continuous improvement in all products, services and processes along with proper problem solving methodology.


Attracting, retaining and growing customers

• Customer delivered value – the difference between total customer value and total customer cost.–Value includes product,

services, personnel and image value.

–Cost includes monetary, time, energy and psychic costs.


Customer satisfaction

• The extent to which a product or service’s perceived performance matches a buyer’s expectations.

• What are expectations based on?– Past buying experiences– Friends, family and other associates– Information about the competition– Promises made in marketing materials

(your brand)


Customer loyalty & retention

• Highly satisfied customers are:–Less price sensitive–More likely to talk favorably about

you –More likely to refer you to others–Remain loyal for longer


CRM Stakeholders:• Advertising agencies• Call centers• Company employees• CRM vendors.• Consultants• CRM developers• Marketing• Sales• Telecom hardware vendors• Legal counsel


Risk of CRM Implementation Failure:

• Vendor failure• Customer Rejection• Cost overruns• Time overruns• Disruption of service• Internal rejection• Evolving standards• Shifting customer expectations• General Economic Slowdown• New Technology


COST EFFECTIVE TRANSPORTATION

• Minimize number of transporters.• Give CRM inputs to transporters.• Use appropriate size of vehicles for cost effectiveness.• Reduce vehicle waiting time at plant.• Use dedicated single transporter exclusively working for the

organization.• Work out PDP & monitor the performance• Negotiate Rs./Km. instead of Rs./Kg. with dedicated

transporters.• Consolidate materials at regional locations for better utilisation

of trucks.


Stockiest Retention

Sales

Customers RetainedCustomers ShiftedChanged as un at-tendedAdding New Cus-tomers


STOCKIEST RETENTION

• Incentivizing Stockiest on regular basis to retain them.

• Offering best Quality Products and generating market pull.

• Fast processing of claims thru hassle free procedures.

• Drishti installed at stockiest covering 80% of business.

• Setup COP unit to minimize order processing at C&FA’s.


Employee Retention

• Survey on total employee satisfaction in 2005 among the leading FMCG Companies.

Dabur listed in Top 3 FMCG groups and awarded with

‘DABUR’ A GREAT PLACE TO WORK

• Long Service Awards for Employees


APPROACHES

TRADITIONAL crm

Assume Customers Need

SPCIFY Verify

Produce Estimate Quality

Education to Customer

Face Major Problems

Fix Problems By Down Stream Initiation

Study Customer Need

SPCIFY Verify Throughly by searching Problems

Produce Right Quality

Listen and attend to Customer

Face Minor Problems

Fix Problems By Up Stream Initiation


AROUND THE DABUR IN 14

MINUTES AVSEQ01.DAT


OUR GROWTH STRATEGY

EXPAND

INNOVATEACQUIRE

The underlying thread of strategy is:

“PEOPLE”


Dabur India Limited has marked its presence with some very significant achievements and today commands a market leadership status.Our story of success is based on dedication to nature, corporate and process hygiene, dynamic leadership and commitment to our partners and stakeholders. The results of our policies and initiatives speak for themselves.

• (SBU) – and

• •

Dabur At-a-Glance


• Leading consumer goods company in India with 4th largest turnover of Rs.4110 Crore (FY10-11)

• 6 major strategic business units • Home And Personal Care (HPC) Oral Care (OC) Health Care

(HC) Ayurvedic (AYU) Fem (Fem) Foods (FOODS)

• 3 Subsidiary Group companies -Dabur International & newu

• 8 step down subsidiaries: Dabur Nepal Pvt Ltd (Nepal), Dabur Egypt Ltd (Egypt), Asian Consumer Care (Bangladesh), Asian Consumer Care (Pakistan), African Consumer Care (Nigeria), Naturelle LLC (Ras Al Khaimah-UAE), Weikfield International (UAE) and Jaquline Inc. (USA).

• 17 ultra-modern manufacturing units spread around the globe

• Products marketed in over 60 countries


Dabur At-a-Glance

• Wide and deep market penetration with 50 C&F agents, more than 5000 distributors and over 2.8 million retail outlets all over India

Strategic positioning of Honey as food product, leading to market leadership(over 75%) in branded honey market

Dabur Chyawanprash the largest selling Ayurvedic medicine with over 65% market share.

Vatika Shampoo has been the fastest selling shampoo brand in India for three years in a row

Hajmola tablets in command with 60% market share of digestive tablets category.

About 2.5 crore Hajmola tablets are consumed in India every day

Leader in herbal digestives with 90% market share


DABUR DOCTORS MEET


DABUR HEALTH CAMPS


LEADING VAID HONOUR


DABUR TRAINING SESSION


• Narendrapur (WB)• Sahibabad (UP)• Alwar (Rajasthan)• Baddi (HP)• Rudrapur (Uttaranchal)

• Katni (MP)• Beergunj (Nepal)• Zabel-ali (Dubai)• Kalyani (WB)• Ramadan (Egypt)

Manufacturing Units

Established : December 1979

BAMS/MDs

MBBS/MDs

Pharmacists (M.Pharms/Ph.Ds)

Chemists (M.Sc./Ph.Ds)

Botanists

Agronomists

Biotechnologists

Our People are our Strength

Oil Technologists

Food Technologists

Information Scientists

Oncologists

Plant Tissue Culturists

Animal Tissue Culturists

Pharmacologists

Established: Dec. 1979

Strength : 155 Scientists : 138

Consultants : 06 Admin. Staff. : 18


Research Areas

Ayurvedic Drug Research

Pharmaceutical Research

Clinical Research

Phytopharmaceuticals

Personal Care Products

Oncology Research

CGMP/Regulatory Affairs

Agronomy

Biotechnology

Analytical Development

Synthetic Chemistry

New Drug & Peptide Research

Food Technology

Veterinary Health


DRF Affiliations...

DSIR, Government of India

Expert Committee on Herbal Medicines

Bureau of Indian Standards

Working Group of I.P.

Drug Technical Advisory Board, Ministry of H & FW

Member, Ayurvedic Pharmacopoeia Committee

Scientific Committee, Indian Herbal Pharmacopoeia

National Bio-diversity Board, Dept. of Biotechnology

AAPS, USA

Professional Bodies/Associations


Our Partners in Clinical Research

36 Medical Colleges & Teaching Hospitals

Some Prestigious ties

– All India Institute of Medical Sciences, New Delhi

– Institute of Medical Sciences, BHU, Varanasi

– JIPMER, Pondicchery

– MGIMS, Sewagram, Wardha

– Seth GS Medical College & KEM Hospital, Mumbai

– Central Drug Research Institute, Lucknow

– PG Institute of Basic Medical Sciences, Calcutta

– Apollo Group Hospitals, Chennai & New Delhi


Thus Dabur Products Offer…….

Quality

Safety

Efficacy


• Dabur AV.mpg

Business

Customer Delight - CRM and Logistics Interface